Online advertising revenue is expected to reach $16.5 billion by 2005 according to research released yesterday by Jupiter Communications Inc. But consumers will be inundated with up to 950 e-mail messages a day.
Jupiter analysts said that to outpace the growing clutter, advertisers must diversify their use of online tactics and advertising models. Successful publishers must expand their offerings and develop their sales strategies to outwit the advertising sprawl.
The study found that marketers plan to increase Internet advertising spending at a higher rate than in any other media. Approximately 73% of advertisers said they would increase their online advertising spending in the next 12 months, in contrast to the 43% who said they would increase their magazine spending; 37% plan to increase their cable TV budget. This expected growth would propel the Internet to fourth place as an advertising medium–behind that of TV, radio, and newspapers.
Marketers will have to break through the huge number of e-mail messages received by consumers by using integrated online tactics as well as new models. Advertisers must focus on communicating a consistent message via e-mail marketing, viral campaigns, affiliate networks and sponsorship in addition to banner advertising.
This Jupiter online advertising report was released during the fifth annual Jupiter Online Advertising Forum, being held in New York this week.
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